Fresh accounting ‘problem’ sends Global shares spiralling

28 Apr 2004

Shares in Bermuda-based Global Crossing plummeted 27.5% yesterday after it emerged that the company, which has only recently emerged from Chapter 11 bankruptcy, is facing more accounting problems. Global Crossing, now 61.5% owned by Singapore Technologies Telemedia, says it understated liabilities for access charges in 2003 to the tune of between USD50 million and USD80 million. It has warned that the hiccup will force it to restate earnings for 2003, review its 2002 figures, and most likely delay its reporting for the current fiscal year.